On June 18, 2021, the relevant departments of Sichuan Province formally issued a notice requiring power generation companies to conduct examination and immediately stop supplying power to crypto "mining" projects for the purpose of implementing national clean-up requirements.
6月19日，关停如期而至，随之而来的是比特币算力的持续下降。截至6月22日14时，BTC区块链浏览器显示，比特币全网算力为115.63 EH/s，较今年5月13日时的历史峰值181 EH/s下降超30%，大部分企业的算力增长率都在减少。
On June 19, the shutdown came as scheduled, followed by the continued decline in Bitcoin's computing power. As of 14:00 on June 22, the BTC blockchain browser showed that the computing power of Bitcoin's entire network was 115.63 EH/s, which was a drop of more than 30% from the historical peak of 181 EH/s on May 13 this year. The growth rate of computing power for most companies was decreasing.
It is foreseeable that under this crackdown, the number of Bitcoin mines and miners in China will continue to shrink, and its computing power has lost its leading position in the world. This may also mean that the era of China’s Bitcoin mining is over, while the mining industry for overseas Bitcoin such as North America began to rise.
In response to this problem, the leading mining machine manufacturer, Bitmain held a closed-door meeting in Chengdu in June 19, aiming to provide domestic miners and mine owners convenient conditions for oversea mining. Judging from the current situation, this has become an inevitable trend.
The mines that have been shut down are basically expanding to overseas. At present, the locations of large-scale miners and mines are led by the United States, Kazakhstan, Canada, and Russia.
The United States is relatively more friendly to the political environment and supervision. For example, Texas has politicians who support crypto assets, and Kentucky is also adopting policy guidance to attract Bitcoin miners. In addition, power resources are abundant and cheap in some parts of the United States. Crescent has conducted statistics on the cost of Bitcoin mining in various states in the United States. The top five states with the lowest BTC mining cost are: Louisiana (mining a Bitcoin cost US$3,224), Idaho, Washington, Tennessee, Arkansas. According to sources, the founder of LTC mining pool has planned to move to Texas and Tennessee. This shows that most mining unions have chosen the United States as their first choice.
Kazakhstan is rich in coal resources and mainly thermal power. It is recognized as one of the regions with low electricity costs around the world. Data shows that the cost per kWh of electricity is US$0.03 (about 20 cents), and the cost of electricity in some places can even be reduced to less than 1 cent per kWh, which is very competitive. Furthermore, the border between China and Kazakhstan is open and containers can be imported for free. Imported products are subject to a 12% tax, and there is no additional customs fee. It is the cheapest among the CIS countries, and this may be the first choice for many large mines. However, Kazakhstan’s policy is changing as it only allows the mining of asset-backed cryptocurrencies. The mining of cryptocurrencies, such as Bitcoin, is prohibited.
Canada encourages and supports the innovation of cryptocurrency, mainly because its economy and financial market are much smaller than the United States. Canada is also a country of immigration, and it has lower trial and error costs. In addition, Canada has a higher latitude and more land in the Arctic Circle than the United States. As a result, many Chinese mines have decided "go out" in 2018. At present, Quebec, Manitoba, British Columbia, and Alberta, which are rich in hydropower resources, have attracted much attention.
Ekibastuz is a city in northern Kazakhstan close to Russia. The temperature during the hottest month of summer rarely exceeds 28°C. Many mines will control the temperature at about 20°C, so the temperature of Ekibastuz is very suitable for the operation of the mining machine. In terms of cost, Russia’s energy costs are low. Although Russia prohibits the use of cryptocurrency to purchase goods and services, it allows cryptocurrency mining and trading from 2021, and even the military has related projects. Therefore, Russia may become the next battleground for many strategists. At present, Irkutsk, Leningrad, and Krasnoyarsk territories have also received the attention of miners.
出海仍需考虑哪些因素？What are the factors to be considered?除了安全问题上，出海仍有需要因素需要考虑，大致可分为两方面：
In addition to safety issues, there are factors to be considered for oversea mining, which can be roughly divided into two aspects:
1) Policy factors
One, the price of electricity. This is the most important cost. The lower the electricity price, the more attractive it is to miners.
The second is temperature. There is no need to build a separate cooling device in areas with low temperatures. However, if mining in the city, we must consider the problem of the huge heat emitted.
The third is the network. The faster the network speed, the faster the speed of the entire mining process.
At present, the regions with these three advantages include the Nordic countries such as Russia, Canada, and Iceland.
2) Non-policy factors一是金融和外贸政策。是否支持加密货币，或允许挖矿？是否会突然没收矿机？如果有自然灾害，是否会补贴电力损失？在税收方面是否有新的优惠？是否对中国企业有优惠或歧视政策？
First, the financial and foreign trade policies. Does it support cryptocurrency, or allow mining? Will the mining machine be confiscated? If there is a natural disaster, will it subsidize the power loss? Are there any new incentives in taxation? Are there any preferential or discriminatory policies for Chinese companies?
The second is the energy and environmental protection policy. How to reduce the emissions internationally? What is the current carbon emission situation? Is there enough clean energy to replace? If the country's environmental protection issues are more prominent, the high energy consumption activities must be restricted, and on the other hand, carbon emission rights must be purchased at a high cost. If you cannot make ends meet, cryptocurrency mines will inevitably become targets of criticism.
In any case, Bitcoin's computing power and its infrastructure are expanding to overseas and gradually leaving China.
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